Anchored retail case study

- [Narrator] Hey, welcome back,…in this lecture we are going to look at…an anchored retail example,…essentially a Sprouts shopping center.…So an anchor is basically a large recognized tenant…that is the main tenant for a shopping area…that draws traffic that helps all…of the other smaller tenants.…Okay so we're going to look at something like this,…the purchase and stabilization…of a Sprouts anchored retail center.…Where Sprouts is the main draw,…and then there are a bunch of other smaller tenants.…

So, we're coming in where Sprouts is already there,…but the rest of the space is only 50 percent leased.…This is mostly an income play.…There's not a lot of value added,…it's a fairly new center so there's not that much…to do other than to lease up the space.…We are looking at a small Sprouts store…of just under 15,000 square feet,…and then there's 25,000 of other mixed retail…that ranges from about twelve hundred…to 5,000 square feet in size.…

Now the base line economics that we're looking at…is that we're buying it a six percent cap rate…

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11/26/2018

Jump-start your career in commercial real estate. In this course, get acquainted with the different commercial real estate asset classes, and learn how to evaluate each one through a series of practical examples. Instructor Symon He equips you with several key real estate investment techniques, sharing how to evaluate assets such as warehouses, mixed-use retail and apartment residential developments, and downtown office buildings. To lend a practical context to the concepts he covers, Symon walks through a variety of case studies inspired by real-world deals. Learn about operating assets, replacement cost, the main types of commercial leases, and other essential concepts.